As we had expected, the Dollar index made a pullback through our first target of the 38% retracement and even reached the 50% Fibonacci retracement. The trend is bearish for the short-term.
Blue lines – bullish channel
The bullish channel was broken from last week and we noted promptly that a correction was near and our first target was the 38% Fibonacci retracement. The dollar weakened amid a drop in NFP numbers announced on Friday. This caused a breakdown.
The weekly candle reached the lower cloud boundary after being rejected by the kijun-sen (yellow line indicator). This rejection was noted and a warning was given to dollar bulls last week. A weekly close below and out of the cloud area will be a longer-term bearish signal. This will mean that the correction
is not ended at the 38% Fibonacci retracement of the rise from 2014, but could extend lower towards the 50% or even the 61.8% Fibonacci retracement.
The material has been provided by InstaForex Company – www.instaforex.com
As we had expected, the Dollar index made a pullback through our first target of the 38% retracement and even reached the 50% Fibonacci retracement. The trend is bearish for the short-term.
Blue lines – bullish channel
The bullish channel was broken from last week and we noted promptly that a correction was near and our first target was the 38% Fibonacci retracement. The dollar weakened amid a drop in NFP numbers announced on Friday. This caused a breakdown.
The weekly candle reached the lower cloud boundary after being rejected by the kijun-sen (yellow line indicator). This rejection was noted and a warning was given to dollar bulls last week. A weekly close below and out of the cloud area will be a longer-term bearish signal. This will mean that the correction
is not ended at the 38% Fibonacci retracement of the rise from 2014, but could extend lower towards the 50% or even the 61.8% Fibonacci retracement.
The material has been provided by InstaForex Company – www.instaforex.com
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